A leading national bank, renowned for its extensive network and commitment to financial inclusion, is strengthening its MSME lending portfolio through a strategic partnership. The collaboration with a prominent housing finance corporation aims to streamline loan processing and expand credit access.
Share Price Movement
The share price of Central Bank of India Limited went up 2.78 percent to Rs. 51.34 per share on Tuesday, an increase from its previous close of Rs. 49.95 per share. The market capitalisation now stands at approximately Rs. 44,029 crore as of February 04, 2025.
What Happened
Central Bank of India has partnered with Vastu Housing Finance Corporation Limited to offer MSME loans at competitive rates. Vastu Housing Finance will originate and process loan proposals, and the Central Bank of India will take up to 80% of the loans into its books on mutually agreed terms.
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Competitors
Central Bank of India Competes with State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India, and Indian Overseas Bank.
The central bank of India is currently trading at a P/E of 12.09, which is above the industry P/E of 7.13.
Market Outlook
The banking sector is expected to face significant challenges in 2025, marked by tight liquidity, slowing loan growth, and evolving regulatory changes. While retail growth has remained relatively stable, concerns over asset quality, particularly in microfinance and unsecured loans, continue to weigh on lenders such as IDFC First Bank and RBL Bank.
Weak credit expansion is further stifling deposit growth, and persistent inflation is discouraging borrowing. In this complex environment, strong leadership will be crucial to navigating these headwinds and ensuring stability in the sector.
Written By Fazal Ul Vahab C H
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